Friday Afternoon Breaking News- Dallas

[DH2WN]

Good advice for SWA. If YOU cant compete in earnest after 30 years and go to DFW, or if you have to have your competition removed from your airport AGAIN after 30 years, YOU should be forced to fold up.

IAD did it in the face of DCA and DCA restrictions were promptly abolished. I guess DFW and AA are just a little to stupid to make their citiy/company work after 30 years.

 

[Flopgut]

Airlines have never suffered under a "fair" system of competition. Each and every one has tried to exploit some advantage. Some have been fined by the government for these practices and moved in/lost money to kill off competition.

In SWA's case they did it all while making money with a whole new way of scheduling. No hub and spoke (I know, I preach to the choir). SWA's competition was and is often the car. If the passenger wants the legacy product they will go out and purchase it. If they want the fall of Siagon boarding process to ride in the clown car, they will go for that. It's that simple.

The legacy hub and spoke system has NEVER been the most cost effective way to fly. And they prove that they don't care about passenger sticker shock when they jack up fares for last minute travel or thin markets. You may find this hard to believe but I meet passengers commuting that fly SWA becuase they are cheap and hate getting gouged. People who can afford expensive travel almost monthly and appreciate good customer service. Some like SWA customer service. Some think it could be better but like the price and "fair" way they are treated. A consistency of product that meets their minimum standard. They are a step below the NetJet crowd. The legacies need to learn customer service starts with the ticket pricing system. Where do the legacies fit in all this????

So, going forward, which way of running a business do you think will prove most durable? While some legacy airlines may have periods of advantage over others and have growth spurts I think it is smartest to go with an airline that has a permanent advantage and has a good chance of continuing to exploit it.



You can argue about this Love Field vs. DFW (or whatever you want to call it) but it is only a small piece of the puzzle now. You want what is fair? It's not about fair. It's about what is accepted and encouraged in our economy.

OK, Fair is a bad word. What I'm trying to say is that we have crazy things happening on both sides of this issue and that needs to stop. We need a nice, calm period of "business as usual" for all. Going forward, If SWA stops getting nice, fat slow-pitch balls over the plate, and legacies can stop being beaned with fastballs and then beaten with the bat, we'll learn what our indutry's future is in this economy. Obviously, we've got some competition for you, there is a lot that differentiates our operations. J3 Cub Capts' wife is buying a pretty expensive ticket for certain. BUT, what if we close that up a little? Say SWA loses on the WA and that $700 goes up to $1000, simultaneously, his wifes' company gets a little more disciplined about scheduling business and finds a fare for $1400. AA can put her in first class, feed her, and get her there refreshed ready to go. Additionally, buy that AA ticket 10 times and she and the Cub Capt. are going to Rio! That will begin to matter again, hopefully soon.

The latest news on this is pretty interesting. A lopsided win for SWA is not exactly a lock. I think people see what you did in Denver and are taking a closer look. Frontier uses the premier airport, put together a superior LCC product and offered low fares. Now you want back in the Denver game and folks are wondering what the deal is with Dallas? Why does your Dallas operation HAVE to be something so unique? WHY does it have to be something that, not only enormously advantages you, but at the same time puts so many others in jeaprody for you to be happy? It's wearing thin.

I believe you when you say you want everyone's career to improve. I'm appreciative and feel the same about your career. We all need to make some dough.

 

[Tejas-Jet]

I think people see what you did in Denver and are taking a closer look. Frontier uses the premier airport, put together a superior LCC product and offered low fares. Now you want back in the Denver game and folks are wondering what the deal is with Dallas?

What is it that peole see that SWA did in DEN? So far, DEN has been an outstanding operation for SWA in terms of the numbers of people flying. And, since prices have been lowered by the competition, numbers of people traveling out of DEN has also increased for UAL and Frontier....a rising tide lifts all the boats....best of all, SWA is profitable out of DEN.

Where I live, folks are "wondering what the deal is with Dallas", but only in the context of getting rid of the Wright (Wrong) Amendment. What are they saying where you live?

Anyway....moot points because the Mayors of Dallas and Ft. Worth have called a press conference for noon today at the DFW airport. Seems the CEO's of both SWA and AA will be there at that press conference so I guess you can see what that means....This arguement will be null and void....noon today....null...and ...void...over and done with....basta....gone....fini....

Tejas

 

[Dangerkitty]

Anyway....moot points because the Mayors of Dallas and Ft. Worth have called a press conference for noon today at the DFW airport. Seems the CEO's of both SWA and AA will be there at that press conference so I guess you can see what that means....This arguement will be null and void....noon today....null...and ...void...over and done with....basta....gone....fini....

Why couldn't the news conference be at Dallas Love?

 

[The Prussian]

...This arguement will be null and void....noon today....null...and ...void...over and done with....basta....gone....fini..Tejas

Tejas....I agree with everything in your above post except this last statement. My feeling is that once the press conference is held, things could become very testy, as AMR and Southwest air their views about this "compromise" and then congressmen weigh in. This "compromise" is more than likely way off center with respect to where the two airlines themselves would end up in their own negotiations. Time to kick back and watch the fireworks. We'll see...

 

[Tejas-Jet]

Tejas....I agree with everything in your above post except this last statement. My feeling is that once the press conference is held, things could become very testy, as AMR and Southwest air their views about this "compromise" and then congressmen weigh in. This "compromise" is more than likely way off center with respect to where the two airlines themselves would end up in their own negotiations. Time to kick back and watch the fireworks. We'll see...

I have to agree with you to a point. Since both Airlines are sending representatives to the press conference, one would think that this would indicate that they are OK with the deal...if not, why even show up? Senator KBHutchison has already indicated she is onboard with this compromise and will get it through the regulatory hurdles in D.C.

If SWA and AMR air their views, it will most liekly be through back channels to their reps in D.C.

However, in listening to some of the local radio talk shows during my morning run, it is very apparent that the public wants this law gone...now. They want more travel opportunities. The radio talk show hosts I listened to were already asking for the N. Texas delegation in D.C. to step up and get rid of the amendment in total in one fell swoop.

This is an issue of competition free of government interference, and pro-consumer in that it will lower fares and allow for more people to fly in and out of the DFW area. Washington should never be in the business of telling businsess where and how they should operate.

Tejas

 

[Flopgut]

Flopgut, you're amazingly ignorant, obfuscate the facts or just a plain ole' liar.

I live in the Dallas area, grew up there, I've followed this stuff for the last 15+ years, and I have 1st hand knowledge of what I speak. Let's leave it at that.

It's pointless to argue with you, so I won't. Life's too short.

Wow, 15 whole years huh? You must know everything. Lets leave it at that.

 

[GuppyWN]

Please see the following message from Colleen about the Wright Amendment:

Just in time for the celebration of our 35th Anniversary, the cities of Dallas and Fort Worth, DFW Airport, American Airlines and Southwest Airlines, participated in a historic and precedent-setting announcement to settle, by mutual agreement, the battle over the Wright Amendment. Dallas Mayor Laura Miller and Fort Worth Mayor Mike Moncrief hosted a press conference today, which included Herb Kelleher and Gary Kelly from Southwest Airlines.

The settlement, once implemented, as it must be, by the U.S. Congress, will permit Customers to fly from Dallas to markets beyond those currently allowed under the Wright Amendment on direct and connecting flights on a single ticket. This will generate new revenue and improve upon our Legendary Customer Service.

Moreover, for the first time since 1968, when Dallas and Fort Worth agreed to build DFW, the cities of Dallas and Fort Worth, DFW Airport, and American Airlines, by this settlement agreement, formally acknowledge the right for Love Field to exist as an airport and for Southwest Airlines to serve Love Field. This important development provides Southwest with the opportunity to grow and reinvest in our hometown airport, enhancing the growth prospects for our Dallas-based Employees, while benefiting the job security of all Southwest Employees. Metroplex Customers will save tens of millions of dollars on airfare.

Under the agreement, Southwest will be able to grow beyond the 14 gates currently in use, with assured access to at least 16 gates. The airport, overall, will be limited to 20 gates.

Perhaps most importantly, Southwest will be able to plan on the absolute certainty that the Wright Amendment, in place since 1979, will be completely removed in eight years, setting Love free and giving Southwest's Customers and Employees the Freedom to move about our great country on a totally unrestricted basis.

I want to personally thank each and every one of you who has rallied behind our Company in the fight to Set Love Free. Many of you have worked tirelessly to ensure that our voices have been heard, and today, I am proud to say your efforts have paid off!

LUV,
Colleen

If we were willing to avoid nonstop flights for 8 years then the thru ticketing must be a huge deal. I trust Mr. Kelly. Full speed ahead.

Gup

 

[Flopgut]

I like what I've read about it so far. Let's pass it, and then stick to it.

 

[GuppyWN]

So Flop, in eight years it won't be discrimination for us to have a monopoly at DAL? Pick a horse brother and ride it.

The amendment is wrong - plain and simple. All this does is give AA 8 years to tout the "only nonstop from Dallas." BTW. I'll give AA one week after this pig is ratified to announce they are leaving DAL - once again.

Gup